U.S. Single-Family Rents Soar 7.5% in June, Accelerating Pace
U.S. single-family home rental prices jumped 7.5% in June, showing no sign of abating amid a hot housing market and construction lags.
The year-over-year pace accelerated from 6.6% in May, which was the biggest percentage gain since at least 2005, according to CoreLogic Inc., which tracks changes nationally. The most expensive homes saw the biggest jump in rents, at 9.6%.
While inflation has somewhat moderated for some goods and services -- including lumber -- rents are picking up the pace.
Rent prices are now higher than if they had stayed on their pre-pandemic track. Because rents are not as volatile as other items, continuing gains will be harder to reverse, and could fuel inflation in the longer term.
The highest single-family rent price increases continue to be recorded in the Southwest, with Phoenix and Las Vegas up by 16.5% and 12.9%, respectively, CoreLogic said. Chicago and Boston were the only two of the 20 metropolitan areas analyzed to post rent decreases.
With home values also soaring in the U.S. -- reaching an all-time high median price of $357,900 last quarter -- many Americans have little choice left but renting.